A 0.8 per cent tea export levy by the Tea Board of Kenya has drawn sharp opposition from tea farmers and Members of Parliament, who say it would burden growers and cannot be introduced without parliamentary approval.

🇰🇪 Breaking It Down

In a video message obtained by Kenyans.co.ke , Gatundu South MP Gabriel Kagombe directly addressed the Tea Board, saying farmers would not accept the proposed levy and arguing that similar levies had previously been removed due to their impact on growers.

“We want to tell the Tea Board of Kenya that the tea farmer will not pay you 0.8 per cent. In fact, the tea farmer will not pay you any levy; you will continue as before. We removed that tax over ten years ago because we saw it was oppressive to the farmer and you will not reintroduce it,” he stated.

Kagombe said imposing the levy is illegal because it has not been approved by Parliament, which is currently reviewing amendments to the Tea Act.

📌 What You Need to Know

“It is illegal because Parliament has not passed it. In fact, we are currently discussing the Tea Act and as a committee we told you categorically that we will not allow you to charge any levy to any farmer,” he added.

The opposition comes after Tea Board officials appeared before the National Assembly Departmental Committee on Agriculture and Livestock to present proposals on the Tea (Amendment) Bill, 2023, including changes to the export levy.

The board suggested reducing the proposed levy on bulk tea exports from one per cent to 0.8 per cent of export value, with the funds set to support regulation, research, market development and infrastructure in tea-growing areas.

However, MPs questioned the implementation of the levy, raising concerns that the cost, which reportedly amounts to over Ksh 3 per kilo, would ultimately be passed on to farmers.

Lawmakers further questioned the regulator’s position, with Runyenjes MP Muchangi Karemba asking why the Tea Board, farmers and the Kenya Tea Development Agency (KTDA) held differing views on the levy’s impact.

Recently, the East Africa Tea Growers Association also opposed the charge, arguing that it could affect Kenya’s competitiveness in the international tea market , with neighbouring countries already fetching higher prices than Kenya at the Mombasa Tea Auction because of the levy.

📰 Source: Kenyans.co.ke